Recent blog entries have reported on e-mail correspondence between a community member named “Larry” and me. Set forth below is the text of an e-mail sent by Larry on November 12, 2009.
I see and understand the difference that you talked about in your note. Buffet has said for years that he hopes the academics keep teaching the Efficient Market Theory in business schools. It helps him with his investing approach.
One of my main points in investing is to avoid catastrophic investment loss. The P/E 10 helps with this goal. I’m just trying to articulate additional benefits of your investment approach. You’ve focused heavily on safe withdrawal impacts in your writings. This is great but as you know there are many more benefits to your approach. I want to finish the position paper and chart so you and others can see the entire spectrum of benefits of the valuation informed investing process.
I think what you have done is beyond awesome. However, I think you spend way too much time and energy battling old foes. I’m just trying to help bring the positive aspects of your work to the next level.